Bitcoin Price Drops Again – What Could Trigger A Fresh Increase?

Bitcoin price failed again to gather pace above the $43,500 resistance level. BTC started a fresh decline and might soon revisit the $40,000 support.

• Bitcoin is moving lower below the $42,000 support zone.
• The price is trading below $42,000 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance near $41,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could find strong buying interest near the $40,600 and $40,000 levels.

Bitcoin Price Declines Below $42K

Bitcoin price attempted more gains above the $43,000 level. However, BTC failed to clear the $43,500 resistance and formed another rejection pattern.

A high was formed near $43,421 and the price started a fresh decline. There was a move below the $42,200 and $42,000 levels. The price declined below the 50% Fib retracement level of the upward move from the $40,605 swing low to the $43,421 high.

Bitcoin is now trading below $42,000 and the 100 hourly Simple moving average. There is also a key bearish trend line forming with resistance near $41,800 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $41,250 level. The first major resistance is forming near $41,800 and the trend line. A close above the $41,800 resistance might start a steady increase. The next key resistance could be near $42,250, above which BTC could rise toward the $42,800 level. A clear move above the $42,800 level could set the pace for a test of $43,500.

More Losses In BTC?

If Bitcoin fails to rise above the $41,800 resistance zone, it could continue to move down. Immediate support on the downside is near the $40,600 level or the last swing low.

The next major support is near $40,000. It is close to the 1.236 Fib extension level of the upward move from the $40,605 swing low to the $43,421 high, below which the price might test the $39,500 zone. If there is a move below $39,500, there is a risk of more losses. In the stated case, the price could drop toward the $38,400 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 20 level.

Major Support Levels – $40,600, followed by $40,000.

Major Resistance Levels – $41,250, $41,800, and $42,250.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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